Operators of the 12,500-odd private buses have urged the government to provide diesel at subsidised rate or at reduced price and exemption from road tax during the pandemic period to continue operations after July 31.

They also sought exemption from remitting contributions of workers and bus owners to the Kerala State Motorworkers Welfare Board in view of the poor revenue collection even after bus fares were hiked by the government.

“Only 20% of the buses are plying even after the fare hike and schedules are running with four to five commuters. It is not practical to pay the hefty road tax and run services without any revenue. Unless the government implements the three demands, others buses will also be forced to be withdrawn from the road by submitting ‘Form G’ by the month-end to Regional Transport Officers,” M.B. Sathyan and Lawrence Babu, president and secretary of Kerala State Private Bus Operators Federation, said.

They said though the fares were hiked on July 3, it had not benefited the operators as the patronage was less due to the spurt in pandemic, with people afraid to travel in public transport.

“A bus fare hike will not be able to save the industry as the price of diesel, which has a base price of ₹26 a litre, has gone up by ₹11.10 a litre after June 7 and is now priced at ₹78. Of this, ₹32 is levied as central excise duty and ₹19 as sales tax by the State. Reduction of excise duty will alone reduce the price by ₹3 a litre,” they said.

“The 25% hike in fare has resulted in an increase in collection of ₹700 for buses that used to get ₹3,000 daily. But, operators have to spend another ₹880 for fuel in view of the price hike. Hence, providing subsidy or making available diesel at reduced price is the only way to keep the industry afloat,” Mr. Babu said.